Knowing China through Taiwan

Politics

War over Diaoyutais will cripple China's economy: economist

Professor Chen Zhiwu speaks about population problems at the Boao Forum for Asia, April 2012. (Photo/Xinhua)

A war between China and Japan would damage the economy of China for nearly a decade, said economist Chen Zhiwu in a report from our sister newspaper Want Daily.

While Shinzo Abe, the Japanese prime minister, was paying a visit to the US on Sunday, Chinese fishery administration and maritime surveillance vessels entered the waters of the disputed Diaoyutai (Diaoyu or Senkaku) islands. The Chinese vessels stayed in the contested territory for 15 minutes and then left.

During his visit to the Center for Strategic and International Studies based in Washington, Abe declared that Japan is determined to defend its territory from any aggressor, according to the Tokyo-based Yomiuri Shimbun.

In response, General Luo Yuan of the PLA — known for his belligerent stance in supporting a war against Japan over the uninhabited East China Sea island chain — warned Japan that the Chinese government and people will never make concessions with any foreign powers regarding the issue of territorial integrity. Luo believes that China is ready to face a final confrontation with Japan over the disputed territory.

Even though there are hawkish military leaders in China like Luo Yuan looking for an excuse to fight, there are also voices calling for peace, such as Chen Zhiwu. In a report from Hong Kong-based Phoenix Television, Chen encouraged all entrepreneurs in China to study war and diplomacy because they will seriously influence the economy of the nation, especially in the event of a catastrophic war with neighboring countries.